RIO Mortgage

Incentives:

Free Valuation

Legal Fees Contribution

Offers:

Free Valuation Offer*

Free Remortgage Legals Package**

Fixed & Variable Rates

Interest-Only Mortgage

Background

The Tipton & Coseley Building Society has been a mutual Building Society since 1901 and to whom it's been offering savings, mortgages and investment services to its members. All branches are located in the West Midlands where they aim to provide an honest and professional customer service at all time.

Tipton & Coseley provide a range of mortgage products, which include specialist 'later life lending' mortgages. Tipton do not consider lending to retirees an issue if they are in receipt of verifiable income, allowing elderly homeowners availability to Retirement Interest Only Mortgages (RIO’s) on their property.

Eligibility

The Tipton & Coseley Interest Only Mortgage (RIO) is designed specifically for homeowners who are over the age of 55 and require access to the equity in their property to enable them enhance their lifestyle in retirement.

This RIO mortgage could be used as a remortgage vehicle or to assist with a house purchase.

Tipton & Coseley have a sensible approach to lending in retirement whereby on joint applications they will assess each applicant individually in order they could sustain the mortgage solely throughout the term, should their partner pre-decease them.

The Tipton RIO Mortgage is available on both a single and joint life basis with a minimum age of the youngest homeowner being 55. There is no maximum age limit.

The minimum loan on this RIO mortgage is £50,000 with a maximum of loan upto £1,000,000. For mortgage applications above £1,000,000 please call the Equity Release Supermarket team on Freephone - 0800 678 5955 to check qualification and request your bespoke quotation.

There is no specific minimum acceptable level of income. However once eligibility is identified, Tipton will apply a 4.49 times income multiplier to determine the maximum loan.

Eligible income for homeowners acceptable to Tipton & Coseley is mainly pension income, however consideration will go to investment and rental income where they can be evidenced by annual statements and/or SA302's.

Tipton's minimum property valuation on their retirement mortgage is £75,000, however this increases to £250,000 for properties within the M25 corridor. Additionally, the property must be the homeowner's main residence and must be located within England and Wales.

Adverse credit such as arrears, defaults and CCJ’s are acceptable, dependent upon the amount, longevity and level of credit registered. Please contact the Equity Release Supermarket team on 0800 678 5955 to check for eligibility.

Features

This Tipton & Coseley RIO Mortgage provides an initial tax-free lump sum cash release for immediate use, with the ability to make monthly repayments of only interest to Tipton.

There is no maximum term - it will run for the duration of the last surviving homeowner. There is no need for any repayment strategy such as endowment, investment or repayment basis. The loan is an interest-only lifetime mortgage with no end date set.

The maximum loan-to-value (LTV) on this interest-only mortgage is 60% of the property valuation, subject to qualification of income to support this figure. There must be a minimum of 40% remaining equity left in the property and a maximum of 25% of the property value can be used for capital raising purposes.

Unlike equity release schemes, there are no protections in place with this mortgage product if the borrower has difficulty making payments. This is a residential mortgage which means that there are no safeguards if something unexpected takes place, preventing the homeowner from being able to make payments. So, to make use of this product, homeowners must be confident that their income will stay sufficient & constant enough to meet their payment obligations.

The homeowner must make all monthly interest payments as they fall due until the RIO mortgage finishes. This means that the homeowner could put their home at risk if they do not keep up with payments.

If a single applicant passes away before the end of the term, the mortgage will still have to be repaid, usually by sale of the property. On joint applications, the mortgage will continue in the name of the survivor.

Tipton & Coseley aren't members of the Equity Release Council and consequently their plans don’t have the code of conduct applicable like other equity release schemes such as the no negative equity guarantee.

Early repayment charges (ERC’s) are always fixed under the Tipton RIO Mortgage. Early repayment charges are fixed for the length of the fixed or variable term offer (e.g. 3 years).

Options

This Tipton Retirement Mortgage enables any homeowner to spend their tax-free cash as they wish, but unlike roll-up equity release schemes also have the ability to make monthly interest-only repayments to control the future balance as they think fit.

Upto 10% of the original amount borrowed can be repaid each year with no penalty.

Tipton will accept applications which are based on retirees house purchasing, remortgage business and on unencumbered properties.

Additional borrowing may be available with the Tipton RIO Mortgage, but availability and approval is not guaranteed. The amount available is directly related to the homeowner’s ability to afford the higher loan amount and will therefore go through the same affordability verification process.

The mortgage can also be transferred to a new home as long as there is adequate security for the mortgage.

The Tipton & Coseley RIO mortgage usually has fixed and discounted rates within its product range. However they are subject to change, hence contact the Equity Release Supermarket team on Freephone 0800 678 5955 for all the latest interest rates on offer.

Once a specific deal ends, it will revert to the lenders standard variable rate, unless another deal is selected before or at expiry.

To obtain further information, or to request a quotation on the Tipton RIO Mortgage, please contact the Equity Release Supermarket team on 0800 678 5955 today.

Practicalities

The Tipton RIO Mortgage is ideal for the homeowner who wants to only make monthly interest payments over their lifetime and happy to provide proof of affordability. With this product, the homeowner is able to simply make interest only payments for the rest of their life.

RIO mortgages will ensure the balance will always remaining the same as it started, assuming repayments are maintained. This strategy is ideal for those looking to protect and maximise their inheritance, or looking to retain as much capital as possible for taking equity release at a later date.

This product is ideally suited for those looking for an interest-only mortgage and do not want to downsize, but remain in their home.

RIO’s can prove useful for homeowners who aren’t quite ready for equity release, and would prefer to take themselves to a point in the future when they feel they are a better age, or wish to stop making repayments. They are also ideal for those looking for an interest-only mortgage and do not want to downsize, but remain in their residence.

Alternatively, where homeowners can’t get a mainstream mortgage, or even where an interest-only mortgage needs repayment, the Tipton RIO mortgage can provide an excellent solution.

Another concept for these RIO mortgages is that Tipton are effectively offering an interest-only bridge facility into retirement. Maybe this is to a certain point where a repayment vehicle becomes available, such as a tax-free lump sum from their pension, or drawdown by crystallization of pension funds.

RIO Mortgage

TypeDiscounted

Rate3.34%

APR5.00%

Incentives:

Free Valuation

Legal Fees Contribution

Offers:

Free Valuation Offer*

Free Remortgage Legals Package**

Fixed & Variable Rates

Interest-Only Mortgage

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